Malaysia Social Commerce Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Malaysia Social Commerce Market Overview

• The Malaysia Social Commerce Market is valued at USD 1.3 billion, based on a five-year historical analysis of social commerce gross merchandise value and revenue trends. This growth is primarily driven by the increasing penetration of smartphones and social media platforms, with more than 95% internet penetration and over two-thirds of Malaysians using social media, which have transformed consumer shopping behaviors. The rise of e-commerce and the integration of social media with online shopping experiences, including live shopping, in-app checkout, and influencer-led commerce, have further fueled this market, making it a vital component of the retail landscape.
• Key cities such as Kuala Lumpur, Penang, and Johor Bahru dominate the Malaysia Social Commerce Market due to their high population density, urbanization, and advanced digital infrastructure, which mirror broader e-commerce concentration patterns in major urban centers. These cities have a significant number of tech-savvy consumers with high internet and smartphone usage and greater exposure to online retail, making them prime locations for social commerce activities and live-commerce adoption.
• In 2021, the Malaysian government launched the MyDIGITAL initiative through the Malaysia Digital Economy Blueprint, which aims to increase the digital economy’s share of GDP and drive nationwide digitalisation. This Blueprint, issued by the Economic Planning Unit of the Prime Minister’s Department, includes measures to support e-commerce and social commerce growth, such as expanding high-speed broadband, promoting cashless payments, upskilling micro, small and medium enterprises (MSMEs), and encouraging wider digital adoption among consumers and businesses, thereby fostering a conducive environment for social commerce.

Malaysia Social Commerce Market Segmentation

By Product Category:The product categories in the Malaysia Social Commerce Market include Fashion & Apparel, Beauty & Personal Care, Electronics & Gadgets, Home & Living, Food, Grocery & Beverages, Health, Wellness & Fitness, and Others. This categorisation is consistent with leading industry analyses that segment Malaysian social commerce across clothing and footwear, beauty and personal care, food and grocery, appliances and electronics, home-related categories, travel and hospitality. Among these, Fashion & Apparel is the leading segment, supported by the rapid growth of fashion e-commerce in Malaysia and the strong role of social media and live commerce in fashion discovery, styling content, and influencer collaborations. Consumers are increasingly turning to social platforms, short-form video, and livestream sessions for fashion inspiration and peer reviews, leading to higher sales in this category through social commerce channels.

By Business Model:The business models in the Malaysia Social Commerce Market include B2C (Business-to-Consumer), B2B (Business-to-Business), C2C (Consumer-to-Consumer), Social Reselling & Affiliate Models, and Others. This is aligned with industry reports that segment Malaysia’s social commerce by B2C, B2B, and C2C as the core end-use models, alongside social reselling and group-buying structures. The B2C model is the most prominent, as it allows brands and retailers to directly engage with consumers through social media platforms and in-app shops, integrating content, community, and commerce to enhance customer experience and drive sales. This model has gained traction due to the convenience of chat-based selling, integrated payment and logistics features, and the ability for brands to leverage influencers, live streams, and personalised messaging at scale for marketing and conversion.

Malaysia Social Commerce Market Competitive Landscape

The Malaysia Social Commerce Market is characterized by a dynamic mix of regional and international players. Leading participants such as Shopee, Lazada, Facebook (Meta Platforms), Instagram (Meta Platforms), TikTok Shop, Carousell, Grab, Zalora, Fave, Boost, Klook, foodpanda, Mydin, PrestoMall, TikTok Seller Ecosystem Partners contribute to innovation, geographic expansion, and service delivery in this space, with platforms increasingly embedding live commerce, short-form video, and in-app checkout to capture social-driven demand.

Malaysia Social Commerce Market Industry Analysis

Growth Drivers

• Increasing Smartphone Penetration:As of future, Malaysia's smartphone penetration rate is projected to reach 89%, with approximately 29.8 million smartphone users. This surge facilitates easier access to social commerce platforms, enabling consumers to shop directly through social media apps. The World Bank reports that mobile internet subscriptions have increased by 15% annually, indicating a strong trend towards mobile commerce. This accessibility is a significant driver for the growth of social commerce in Malaysia.
• Rise of Social Media Usage:In future, Malaysia is expected to have around 28.4 million active social media users, representing a 10% increase from the previous year. This growing user base provides a fertile ground for social commerce, as platforms like Facebook and Instagram become essential for brand engagement. According to the Malaysian Communications and Multimedia Commission, social media is now the primary channel for product discovery, driving consumer purchasing decisions and enhancing market growth.
• Shift Towards Online Shopping:The e-commerce sector in Malaysia is projected to reach RM 1.2 trillion (approximately USD 274 billion) in future, reflecting a strong increase from previous periods. This shift is driven by changing consumer preferences, with a significant share of Malaysians indicating a preference for online shopping over traditional retail. The convenience of online shopping, coupled with the rise of social commerce, is reshaping the retail landscape, making it a key growth driver in the market.

Market Challenges

• Intense Competition Among Platforms:The Malaysian social commerce market is characterized by fierce competition, with over 50 platforms vying for consumer attention. This saturation leads to price wars and reduced profit margins, making it challenging for new entrants to establish a foothold. According to industry reports, the top five platforms account for 70% of the market share, intensifying the competition and creating barriers for smaller players to thrive.
• Consumer Trust Issues:A significant challenge in the Malaysian social commerce market is the lack of consumer trust, with 60% of online shoppers expressing concerns about product authenticity and service reliability. The Malaysian Consumer Protection Act mandates strict compliance, yet many platforms struggle to meet these standards. This trust deficit can hinder market growth, as consumers may hesitate to make purchases through social media channels, impacting overall sales.

Malaysia Social Commerce Market Future Outlook

The future of the Malaysian social commerce market appears promising, driven by technological advancements and evolving consumer behaviors. The integration of artificial intelligence and machine learning is expected to enhance personalized shopping experiences, while the rise of live commerce will further engage consumers. Additionally, as digital payment solutions become more secure and accessible, they will likely boost consumer confidence in online transactions, fostering a more robust social commerce ecosystem in Malaysia.

Market Opportunities

• Expansion of Digital Payment Solutions:The growth of digital wallets in Malaysia, projected to reach RM 20 billion (approximately USD 4.6 billion) by future, presents a significant opportunity for social commerce platforms. Enhanced payment security and convenience can drive higher transaction volumes, encouraging more consumers to engage in social commerce activities.
• Collaboration with Local Businesses:Partnering with local businesses can create unique offerings and enhance brand visibility. With over 1 million SMEs in Malaysia, collaborations can tap into local markets effectively. This strategy not only supports community businesses but also enriches the social commerce landscape, fostering a more diverse product range for consumers.